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  • Court gives Coinbase the green light to delist Wrapped Bitcoin (WBTC)

    Court gives Coinbase the green light to delist Wrapped Bitcoin (WBTC)

    Court gives Coinbase the green light to delist Wrapped Bitcoin (WBTC)
    • A US federal judge has allowed Coinbase to delist WBTC despite BiT Global’s objections.
    • Judge Martínez-Olguín denied BiT Global’s TRO, citing lack of evidence of harm.
    • Despite the delisting and Coinbase launching cbBTC, WBTC dominates the wrapped digital assets market with an 85% share.

    In a pivotal legal decision, a California federal judge has ruled in favour of cryptocurrency exchange Coinbase, allowing it to proceed with the planned delisting of Wrapped Bitcoin (WBTC).

    The ruling, delivered by Judge Araceli Martínez-Olguín of the US District Court for the Northern District of California, came after a contentious legal battle initiated by BiT Global, a digital asset custodian partly owned by Tron founder Justin Sun.

    The BiT Global lawsuit against Coinbase for WBTC delisting

    The dispute began in November 2024 when Coinbase announced its intention to delist WBTC, citing concerns over its association with Justin Sun.

    Sun, a controversial figure in the crypto space, has faced allegations of fraud and market manipulation.

    BiT Global responded by filing a $1 billion lawsuit against Coinbase on antitrust grounds, seeking a temporary restraining order (TRO) to halt the delisting. The firm argued that the move would destabilize WBTC’s market and cause substantial financial harm to investors.

    Temporary restraining order (TRO) declined

    During a virtual hearing on December 18, Judge Martínez-Olguín denied BiT Global’s request for a TRO, ruling that the company failed to provide sufficient evidence of imminent and irreparable harm. She noted that BiT Global’s delay in filing the lawsuit after Coinbase’s initial announcement weakened its case.

    In its defence, Coinbase pointed to BiT Global’s refusal to disclose ownership details and concerns about Sun’s influence over the token’s integrity.

    While the court left open the possibility for BiT Global to present stronger evidence in the future, the decision effectively cleared the path for Coinbase to delist WBTC as planned on December 19.

    Notably, WBTC’s delisting comes amid Coinbase’s recent launch of its own wrapped bitcoin token, cbBTC, raising questions about competitive motives.

    Despite the controversy, WBTC continues to dominate the wrapped bitcoin market, holding 85% of the Ethereum network’s market share.

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  • Threshold community proposes merger to safeguard WBTC amid growing concerns

    Threshold community proposes merger to safeguard WBTC amid growing concerns

    Threshold community proposes merger to safeguard WBTC amid growing concerns
    • Threshold community proposes merging tBTC with WBTC.
    • The proposal is driven by concerns over WBTC’s stability due to Justin Sun’s involvement.
    • According to the proposal, BitGo will receive T tokens, becoming a major stakeholder in Threshold Network.

    In a strategic move to protect the future of Wrapped Bitcoin (WBTC), a proposal dubbed “#saveWBTC – a merger with Threshold’s tBTC” has been put forward to merge the decentralized tBTC token of Threshold with BitGo’s WBTC.

    The proposal, currently under discussion on Threshold’s forum page, comes in response to rising concerns within the crypto community regarding WBTC’s stability following BitGo’s partnership with Hong Kong-based BiT Global, a company partly owned by Justin Sun, founder of the Tron ecosystem.

    Unease with Justin Sun’s involvement with WBTC

    The partnership has raised alarms due to Sun’s controversial track record, with past incidents of misappropriating collateral. This unease has already led major DeFi protocols like MakerDAO to limit their exposure to WBTC, halt its use as collateral, and consider fully offboarding the asset.

    Aave, another significant player in the DeFi space, is also closely monitoring the situation.

    The Threshold, WBTC merger proposal

    The merger proposal seeks to replace WBTC’s centralized custody and merchant-based mint and burn model with its decentralized and permissionless mint/redeem mechanism. This transition aims to ensure the safety and stability of the underlying collateral, reassuring users and protocols reliant on WBTC.

    The plan involves granting Threshold’s DAO merchant privileges for WBTC while disabling tBTC minting, allowing existing tBTC holders to redeem WBTC at a 1:1 ratio.

    As part of the proposal, BitGo would receive a grant of T tokens, making it the largest stakeholder in the Threshold Network.

    The merger would be implemented in stages to ensure a seamless transition, with a fallback plan to offboard WBTC safely if the proposal is declined.

    By combining WBTC’s established user base and liquidity with tBTC’s decentralized technology, Threshold aims to preserve WBTC’s role in the DeFi ecosystem, ensuring that the concerns over BiT Global’s involvement do not destabilize the broader market.

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  • Whale accumulates $118M in Wrapped Bitcoin (WBTC) amid controversy

    Whale accumulates $118M in Wrapped Bitcoin (WBTC) amid controversy

    Whale accumulates $118M in Wrapped Bitcoin (WBTC) amid controversy
    • The whale acquired 347 Wrapped Bitcoin (WBTC) within just 12 hours on August 19.
    • BitGo plans to transfer control of WBTC to a joint venture involving itself, BiT Global, and the Tron ecosystem.
    • Coinbase has hinted at launching its own wrapped Bitcoin token, dubbed “cbBTC.”

    An unidentified whale has been rapidly accumulating Wrapped Bitcoin (WBTC), amassing over $118 million worth of WBTC in a short span of time.

    According to blockchain analytics firm Lookonchain, the unknown wallet has gathered a total of 1,953 WBTC, purchased at an average price of $58,853 per token.

    The most recent transaction was particularly notable, with the whale acquiring 347 WBTC — valued at approximately $16 million — within just 12 hours on August 19.

     

    This sudden and significant accumulation has raised eyebrows, especially as it coincides with ongoing debates and controversies surrounding the ownership and management of WBTC.

    BitGo’s plans to transfer control of Wrapped Bitcoin (WBTC)

    The controversy began earlier this month when BitGo, the firm responsible for issuing Wrapped Bitcoin (WBTC), announced plans to transfer control of the token to a joint venture involving itself, Hong Kong-based investment manager BiT Global, and Sun’s Tron ecosystem. This decision has led to heightened scrutiny and concern among major DeFi players.

    In response, MakerDAO, a leading decentralized finance protocol, moved quickly to mitigate potential risks associated with WBTC. On August 16, the platform approved a proposal that prohibits borrowing against WBTC collateral on its Sparklend platform.

    Similarly, Aave, another major DeFi protocol, is reportedly considering the adoption of an alternative wrapped Bitcoin token, TBTC, offered by Threshold Network.

    Amid these developments, speculation is rife about the potential entry of Coinbase into the wrapped Bitcoin market. The US-based crypto exchange has hinted at launching its own wrapped Bitcoin token, dubbed “cbBTC,” which could further shake up the market.

    The mystery whale’s aggressive accumulation of WBTC, in light of these industry shifts, adds a new layer of intrigue to the ongoing narrative in the crypto space.

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